American Apparel creditor, Lion Capital, has denied a loan waiver to the clothing company, insisting on full repayment of a $10 million loan by July 4. If American Apparel is unable to come up with the money, the company could additionally default on a $50 million credit line with Capital One, due to cross-default provisions in the agreements, Bloomberg reports.

Lion Capital issued the repayment demand only a week after American Apparel axed its former founder, Dov Charney, during a 10-hour board meeting, citing allegations of sexual harassment and financial misconduct. Lion’s agreement with American Apparel contains a clause allowing the creditor to accelerate payment of the loan in the event of a change of management, Bloomberg reports, which Charney’s ousting triggered.

According to the Wall Street Journal, at some point during the meeting, Charney texted Lion co-founder Lyndon Lea about the board’s decision. Lea and Charney had reportedly “hit it off” when they first met in 2009. Under Lea, Lion lent American Apparel more than $150 million over five years, all of which, except the outstanding $10 million, was paid back.

Allan Mayer, current co-chairman of American Apparel’s board, said in an email to the New York Times that the company had “access to the capital to cover it,” in the event Lion demanded full repayment.

Charney, meanwhile, is continuing his efforts to regain control of the clothing company he founded. The Times reports that Charney has teamed up with Standard General, an investment firm based in New York to purchase at least 10 percent of American Apparel’s outstanding shares.